IGNORE the Competition Act and various other European-led directives at your peril.

That's the warning to local exporters which has been issued by Bolton and Bury Chamber.

Speaking at the latest Chamber's Export Club meeting was Tony Brown, export development counsellor for Business Link Rochdale.

He pointed out the pitfalls of ignoring legislation and advised businesses on how to arrange distribution and agency agreements to minimise commercial and legal risk.

He said: "Manufacturers who dictate who their distributors should sell to and how much they should charge are falling fall of the new Competition Act and risk being fined 10 per cent of their annual turnover.

"With that sort of penalty at stake, it is vital to ensure that your distribution agreements are worded extremely carefully."

He also advised companies to take expert advice in drawing up contracts for agents, both within the UK and Europe.

Recent legislation has given UK agents rights to two years commission if they are dismissed.

But by specifying "indemnity" severance rather than "compensation" severance within a contract, businesses can limit their liability to one year's commission payments.

The choice between indemnity and compensation is unique to the UK, the meeting was told.